AB5 Challenge: Why Did the California Trucking Association Drop out of the Fight?

California Trucking Association Drops AB5 Appeal: What This Means for Truck Drivers

California Trucking Association Ends Its Legal Fight Against AB5

The California Trucking Association (CTA) has decided to stop its legal battle against California’s AB5 law. This law, which was passed in 2019, changes how workers are classified in the state. The CTA’s decision to drop the appeal marks the end of a long fight over the law.

Eric Sauer, the CEO of the California Trucking Association, said that after almost five years of legal action, the group has chosen not to appeal the court’s decision. By dropping the appeal, the CTA has left the fight, but the Owner-Operator Independent Drivers Association (OOIDA) is still involved.

OOIDA Will Keep Fighting Against AB5

Even though the CTA has ended its legal battle, the Owner-Operator Independent Drivers Association (OOIDA) is continuing the fight. Todd Spencer, OOIDA’s president, said they are committed to fighting for truck drivers who want to work as independent contractors in California. 

OOIDA believes that AB5 is unfair to truck drivers who work across state lines. They argue that while the law gives exemptions to certain businesses that operate within California, it does not extend these exemptions to truckers who work in other states. OOIDA says this creates an uneven playing field for drivers who come from outside of California.

What Is AB5 and Why Is It Important?

AB5, which became law in 2019, uses something called the ABC Test to decide if a worker is an independent contractor or an employee. The “B” part of this test is the most controversial. It says that a worker is only an independent contractor if they perform work outside the usual course of the hiring company’s business. For trucking companies, this means they could have a hard time proving that truck drivers, who are central to their business, are independent contractors.

The CTA began its legal fight shortly after AB5 was signed into law. They argued that AB5 conflicts with a federal law from 1994 called the Federal Aviation Administration Authorization Act (F4A). This federal law says states cannot create laws that affect a carrier’s prices, routes, or services. Despite their arguments, the CTA faced several losses in court, including an important appellate court decision in 2021 that overturned an initial block on AB5 and a decision by the Supreme Court not to hear the case.

What Are the Legal Arguments?

OOIDA is still fighting AB5 in court, arguing that the law breaks the Dormant Commerce Clause of the U.S. Constitution. This clause is meant to stop states from creating laws that unfairly impact interstate commerce. OOIDA’s legal brief says that AB5’s rules apply to all truckers working in California, no matter where they live or how long they spend in the state. They believe this is unfair and places too many restrictions on truck drivers who cross state lines.

OOIDA also argues that AB5 treats the trucking industry unfairly. The law has many exceptions for other industries but does not provide the same exceptions for trucking. OOIDA believes this is discriminatory and violates the principle of equal protection under the law.

Looking Ahead

As OOIDA continues its legal battle, the state of California and the International Brotherhood of Teamsters, which supports AB5, will need to respond to OOIDA’s arguments by September 4. The outcome of this case could greatly affect the trucking industry, especially for those drivers who prefer to work as independent contractors.

While the California Trucking Association has ended its fight, the legal struggle over AB5 is still going. The trucking industry is waiting to see how the courts will decide this important issue that could change the way truck drivers work in California.

The decision by the California Trucking Association to drop its appeal against AB5 is a big change in the legal battle over worker classification in California. With OOIDA still fighting, the future for truck drivers remains uncertain. The trucking industry will be watching closely as this case continues, knowing that the decisions made could shape the future of truck driving in the state.